FLORIDA COMMISSION GIVES BIG BOOST TO NEW ENERGY

The goal: Incentivize customer-owned, New Energy-generated electricity and get it connected to the power grid.

The means: Net metering. Net metering makes it possible for New Energy system owners to get credit for power their systems send into the grid. Without net metering, why would a system owner want to send extra generation to the grid?

With net metering and a growing pool of systems sending power into the grid, peak demand periods can be smoothed. More importantly, more home and business owners will be motivated to purchase and profit by installing systems. That will reduce the likelihood of peak demand problems even occuring.

Florida’s new rule pays more per kilowatt-hour for self-generated power than system owners pay for elctricity from the grid, making home systems more economically appealing. The new rule also allows bigger systems, up to 2 megawatts, to participate. That encourages businesess to consider wind turbines and bigger solar systems.

Florida’s Governor Charlie Crist, a big booster for New Energy (no endorsement, just a fact), has been mentioned as a possible John McCain running mate.

Florida, especially South Florida, has good solar resources. Policy like this PSC action allows such resources to pay off. (click to enlarge)

Fla. power cos. to buy back solar energy
March 4, 2008 (AP via Business Week)
and
PSC approves alternative-energy incentives
March 4, 2008 (Palm Beach Post)

WHO
Florida's Public Service Commission (PSC) (Matthew M. Carter II, Chairman)

WHAT
The potential benefit for generating New Energy was expanded when Florida’s PSC ratified expanded “net metering” to allow home and business owners to get more credit for more of the power their solar and wind systems but back into the grid.

Florida is also studying its grid because good grid and good policy are things government can do to support the development of New Energy. (click to enlarge)

WHEN
The larger power allotment and higher rate was passed in December 2007 and ratified March 4.

WHERE
The new rule expands from 10 kilowatts to 2 megawatts the size of systems eligible to send excess power to the grid.

Florida does not appear to have great wind assets - but good policy will put what wind there is to work. (click to enlarge)

WHY
- Customers whose solar energy and wind energy systems generate more power than the owners’ homes or residences use will get credit for sending the excess into the grid.
- The smaller sized systems were typical only in single family homes. The larger systems may be useful in big businesses.
- Owners who put power on the grid will be credited at 12 cents/kilowatt-hour, triple the previous rate.
- The new rule also makes any New Energy power generation eligible for net metering and speeds up grid connection for customers’ systems.

Florida's 2 aces in the hole: The Gulf Stream and a Governor determined to develop it. (click to enlarge)

QUOTES
Carter, PSC: "This rule is expected to increase the development of renewable generation in Florida, which will enhance fuel diversity and reliability…Customer-owned renewable generation also effectively acts as a conservation measure by reducing the amount of electricity purchased from utilities."